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Ovation Company has a single product called a Bit. The company normally produces and sells 24,000 Bits each year at a selling price of $30
Ovation Company has a single product called a Bit. The company normally produces and sells 24,000 Bits each year at a selling price of $30 per unit. The company's unit costs at this level of activity are given below: A number of questions relating to the production and sale of Bits follow. Each question is independent. 2. Assume again that Ovation Company has sufficient capacity to produce 36,000 Bits each year. A customer in a foreign market wants to purchase 6,000 Bits. Import duties on the Bits would be $1.70 per unit, and costs for permits and licences would be $2,700. Both import duties and permits and licenses will be paid by Ovation. The only selling costs that would be associated with the order are $2.10 per unit shipping cost. Compute the per unit break-even price on this order. (Do not round your intermediate calculations. Round your answer to 2 decimal places.)
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